单选题Typically, forward commitments are made with respect to all the following EXCEPT:
单选题After the public announcement of the merger of two firms an investor makes abnormal returns by going long on the target firm and short on the acquiring firm
单选题The quantity theory of money states that: A. a decrease in the money supply will cause a proportional increase in prices. B. monetary and fiscal policy must be used in tandem. C. an increase in the money supply will cause a proportional increase in prices.
单选题On November 15, 2008, Grinell Construction Company decided to issue
bonds to help finance the acquisition of new construction equipment. They issued
bonds totaling $10000000 with a 6% coupon rate due June 15, 2028. Grinell has
agreed to pay the entire amount borrowed in one lump sum payment at the maturity
date. Grinell is not required to make any principal payments prior to maturity.
What type of bond structure has Grinell issued?
A. Serial bonds.
B. Bullet maturity.
C. Redeemable bonds.
单选题The intrinsic value of an option is always zero:
单选题An analyst does research about price value of a basis point (PVBP). With respect to a coupon bond, the duration is 8.61, and the current price of the bond is $101.35. The price value of a basis point (PVBP) of the bond is closest to: A. $0.0861 B. $0.0873 C. $0.1014
单选题According to the Standards of Practice Handbook, a member who is an investment manager is least likely to breach his duty to clients by: A. disclosing confidential client information to the CFA Institute Professional Conduct Program. B. using client brokerage to purchase goods or services that are used in the investment decision-making process. C. consistently supporting, management's recommendations by voting with management on proxies related to non-routine governance issues.
单选题A put with a strike price of $75 sells for $10. Which of the following statements is FALSE? The greatest : A. profit the writer of the put option can make is $10. B. profit the buyer of a put option can make is $65. C. loss the writer of a put option can make is $75.
单选题Financial derivatives contribute to market completeness because: A. the market with financial derivatives allows traders to more exactly shape the risk return characteristics of their portfolios. B. it is a market in which the owner of an option has the right to purchase the underlying good at a specific price, and this right lasts until a specific date. C. it is a market in which any and all identifiable payoffs can be obtained by trading the securities available in the market.
单选题Thefollowingtableprovidesinformationaboutapot[folioofthreebonds.Basedonthisintormatlonthedurationottheportfolioisclosestto
单选题Given the following data regarding Printer, Inc. 's call options, which of the following statements is FALSE?
Stock Price
Expiration
Strike
Option Prem. (Last)
50
50
50
June
June
June
45
50
55
6
2
0.50
A. The June $55.00 call is an in-the-money option. B. The June $50. O0 call is an at-the-money option. C. The intrinsic value of the June $45.00 call is $5.00.
单选题The mean return of a portfolio is 20% and its standard deviation is 4%. The returns are normally distributed. Which of the following statements about this distribution are least accurate? The probability of receiving a return:
单选题Molly Burnett, CFA, is a portfolio manager for a fund that only invests in environmentally friendly companies
单选题For planning purposes, an individual wants to be able to spend 80,000 per year, at the end of each year, for an anticipated 25 years in retirement
单选题When computing the cash flows for a capital project, which of the following is least likely to be included?
单选题Caleb Smith, CFA, is an investment advisor and manages the portfolios of several high-net-worth individuals. To comply with the Standards of Professional Conduct relating to suitability, at the inception of the client relationship, Smith must : A. gather client information including the client's financial circumstances, personal data that are relevant to investment decisions, attitudes towards risk, and objectives in investing. B. invest in a manner consistent with the stated mandate. C. consider the possibilities of rapidly changing investment environments and their likely impact on a client's holdings.
单选题The unemployment rate is defined as the number of unemployed as a
percentage of the:
A. labor force.
B. working-age population.
C. civilian noninstitutional population.
单选题Which of the following statements about forward and future
contracts is FALSE?
A. A future requires the contract purchaser to receive delivery of the good
at a specified time.
B. A predetermined price to be paid for a good is a necessary
requirement in the terms of a forward contract.
C. The primary difference between forwards and futures is that only futures
are considered financial derivatives.
单选题An investor has a portfolio with 10 percent cash, 30 percent bonds, and 60 percent stock. Last year, the cash returns was 2.0 percent, the bonds' return was 9.5 percent, and the stock's return was - 32.5 percent. What was the return on the investor's portfolio?
单选题According to the Phillips curve approach, when inflation is less than expected, the most likely initial effect is that: A. real wage rates will fall. B. real interest rates will fall. C. unemployment will rise above its natural rate.